Wall Street Regains Composure as Omicron Worries Wear Off

However, hot inflation readings continue to stoke investors' anxieties

Jake Scott

Deputy Editor

Dec 10, 2021 at 1:56 PM

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The first full week of December injected some much-needed stability into the market. Despite some bearish technical overtures in the aftermath of last week's selloff, encouraging data regarding the Covid-19 omicron variant gave stocks a boost, helping the Dow to its best day of 2021 on Monday. The tech sector roared back to life as well, staging a nifty V-shaped rally as investors cheered vaccine data from Pfizer (PFE). Some wind was taken out of Wall Street's sails later in the week though, amid hot inflation data. Nevertheless, by Friday afternoon, all three indexes are pacing for sizable weekly wins.

Earnings Continue to Trickle In

Even though the latest earnings season has begun to wind down, there were still some reports that caught our eye. Coupa Software (COUP) was able to brush off some post-earnings bear notes. Meanwhile, while American Outdoor Brands (AOUT) sunk after downgrades poured in following a lowered 2022 guidance. Campbell Soup (CPB) posted an earnings win, but revealed some dire current-quarter issues. Elsewhere, Thor Industries (THO) rose slightly following top- and bottom-line beats, while this mega-retailer scored bull notes after trouncing Wall Street's estimates.

C-Suite Deals Light Up Headlines

C-suites were rife with activity last week, as acquisitions, corporate dealings, and government contracts made headlines. Private equity firm Permira announced an all-cash deal worth $5.8 billion to acquire e-mail security company Mimecast (MIME). Google announced it will continue to allow Roku (ROKU) to keep popular apps YouTube and YouTube TV on its platform. Cannabis giant Tilray (TLRY) said it is acquiring Breckenridge Distillery, for an undisclosed amount. The U.S. Department of Defense (DoD) awarded C3Ai (AI) a five-year agreement worth $500 million, clearing the way for C3Ai to provide the former with counter cyber threat products. Lastly, BlackRock (BLK) revealed plans to move $2.3 trillion in ETF assets.

All Eyes on FOMC Minutes Ahead

Amid this week's inflation updates, next week's Fed meeting minutes are sure to be in the spotlight. On the earnings front, reports are due from household names like Adobe (ADBE), FedEx (FDX), and Winnebago (WGO). And as 2021 draws to a close, be sure check out what Schaeffer's Senior Quantitative Analyst Rocky White has to say about breaking into the market during this bullish season.

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